New Delhi: Leasing of retail spaces in the country nosedived 35 percent in 2019 as compared to the previous year due to consumers holding back their purchases. The leasing activity dropped to 3.6 million sq ft in 2019 as compared to 5.5 million sq ft in 2018. There has been a clear trend of seasonal discount shopping gaining prominence over brand loyalty, according to ANAROCK Property Consultants.
The average vacancy levels stood at about 14 percent in 2019 as against 15 percent in 2018.
The total private equity fund inflow in the retail sector touched USD 260 million in the January-September period of 2019, as against USD 355 million in the same period of 2018. Thus, the decline has been to the tune of 27 percent.
Fashion as swell automobile industries struggled in 2019 which impacted the retail leasing activity. Only Food and Beverage, cinemas and family entertainment categories saw any growth in 2019.
The retailers had to reformulate their growth and expansion strategies. There has been greater thrust on technology to reduce manpower costs. There is has been greater focus on analytics-driven decision making by retailers.
Various international retail companies have benefitted because of relaxed FDI norms by the Indian government for single brand retail.